Credit Card Merchant Account Types
Monday, January 5th, 2009Welcome back!
Understanding Different Merchant Account Types
Today we are going to discuss different types of merchant accounts for credit card processing. Their are different methoods of payments, such as face-to-face retail sales, telephone orders, fax orders, ecommerce orders, and wireless point-of-sale transactions. We will discuss each transaction type in detail below.
RETAIL - Face To Face / Swiped Card Transactions
We are all familiar with making a credit card purchase at a retail location, where our credit card is physically swiped through a credit card machine. Card information is transmitted via phone-line or tcp/ip internet connection. Card is authorized and the transaction is approved or declined. Customer signature is required and maintained by the merchant for future reference.
These transaction types receive the Best Rate for the merchant, as the card is present and signatures are verified at the point-of-sale.
KEYED - Telephone Order / Fax Order
A “Keyed” credit card merchant account is for businesses that take’s credit cards from customers who are not present to swipe through a credit card machine. Customers card information is manually keyed into a credit card machine, credit card processing software, or online virtual terminal. Card data is transmitted and verified, including customer address, zip code, and cvv2 information.
These transactions are of higher risk of fraud and typically cost slightly more in fee’s.
E-COMMERCE - Internet Sales / Order Entry
Ecommerce transactions are originated on the interent. Going to an online store, adding things to a shopping cart, and finally clicking “Check-Out”. The customer enter’s in the card information, address information, and the cvv2 code from the back of the card. Information is securely passed and authorized in real-time. Merchants as a rule, never see the customerrs card number for added security.
These transactions are of higher risk of fraud and typically cost slightly more in fee’s.
WIRELESS - Mobile Merchant / Off-Site Sales
Lastly we have a Wireless Merchant Account, where the merchant processes credit cards using a wireless point-of-sale device. Credit cards are swiped through the terminal and data is passed through a wireless signal, which is enqripted for security purposes. Transaction is approved or declined and a signature is required on the receipt. These devices are also becomming popular at restaurant settings, where the device is handed to the customer and the card never leaves the customers hand.
These transactions are considered “Retail”, as the card is present and swiped through a machine.
If you have any questions, please feel free to give me a call.
MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683
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